The diffusion of multiple process technologies.

The simultaneous diffusion of multiple process technologies is analyzed. A theoretical model of the diffusion of a new process technology is advanced that takes account of the existence of another new technology that is simultaneously diffused. The theory indicates that the degree of complementari...

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Bibliographic Details
Published in:Economic Journal Vol. 104; pp. 420 - 432
Main Authors: Stoneman, Paul, Kwon, Myung Joong
Format: Article
Published: Wiley-Blackwell March 1994
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Online Access:View this record in EBSCOhost
Description
Summary:The simultaneous diffusion of multiple process technologies is analyzed. A theoretical model of the diffusion of a new process technology is advanced that takes account of the existence of another new technology that is simultaneously diffused. The theory indicates that the degree of complementarity between technologies is an important factor influencing the order and the dates of adoption of technologies. It is demonstrated that there is a direct relationship between the degree of complementarity and simultaneous adoption and adoption rates. The model is employed to explore empirically the joint diffusion of numerically controlled machine tools and coated carbide tools in the United Kingdom.